Reviewing Direct Digital (DRCT) and Its Peers

Direct Digital (NASDAQ:DRCTGet Rating) is one of 32 publicly-traded companies in the “Advertising” industry, but how does it contrast to its peers? We will compare Direct Digital to related companies based on the strength of its analyst recommendations, institutional ownership, dividends, valuation, earnings, profitability and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Direct Digital and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Direct Digital 0 0 3 0 3.00
Direct Digital Competitors 104 402 586 7 2.45

Direct Digital currently has a consensus target price of $6.50, indicating a potential upside of 161.04%. As a group, “Advertising” companies have a potential upside of 92.86%. Given Direct Digital’s stronger consensus rating and higher probable upside, analysts clearly believe Direct Digital is more favorable than its peers.

Profitability

This table compares Direct Digital and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Direct Digital 0.87% 99.00% 6.44%
Direct Digital Competitors -16.75% -78.64% -6.32%

Valuation & Earnings

This table compares Direct Digital and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Direct Digital $38.14 million -$1.51 million -0.04
Direct Digital Competitors $1.30 billion $559.00 million 5.65

Direct Digital’s peers have higher revenue and earnings than Direct Digital. Direct Digital is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

2.4% of Direct Digital shares are owned by institutional investors. Comparatively, 36.1% of shares of all “Advertising” companies are owned by institutional investors. 16.0% of shares of all “Advertising” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Direct Digital Company Profile

(Get Rating)

Direct Digital Holdings, Inc. operates as an end-to-end full-service programmatic advertising platform. The company's platform primarily focuses on providing advertising technology, data-driven campaign optimization, and other solutions to underserved and less efficient markets on both the buy- and sell-side of the digital advertising ecosystem. It serves various industry verticals, such as travel, healthcare, education, financial services, consumer products, etc. with focus on small- and mid-sized businesses. The company was founded in 2018 and is headquartered in Houston, Texas.

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